Reference no: EM132547707
Question 1: Colby Company has a process costing system in which the weighted-average method is used. The company adds all materials at the beginning of the process in the moulding department, which is the first of two stages of its production process. Information concerning the materials used in the moulding department during March is as follows:
Units Materials costs
Work in progress at March 1 22,000 € 15,480
Units started during March 90,000 € 46,120
Units completed and transferred to
next department during March 100,000
What was the materials cost of the work-in-progress inventory at March 31?
a) € 1,100
b) € 5,500
c) € 6,600
d) €12,100
Question 2: Merckley Company has a process costing system and uses the FIFO method. For May, the company's beginning work-in-progress inventory was 80% complete with respect to conversion, and the ending inventory was 50% complete with respect to conversion. Information on units processed and conversion costs incurred during May follow:
Units Conversion cost
Work-in-progress inventory on May 1 25,000 € 22,000
Units started into production, and
costs incurred during the month 135,000 € 161,000
Units completed and transferred to
finished goods during the month 110,000
Work-in-progress inventory on May 31 50,000
What was the amount of conversion cost in the ending work-in-progress inventory?
a) €28,750
b) €35,000
c) €57,500
d) €70,000
Question 3: Steven Company uses the FIFO method in its process costing system. The following data were taken from the accounting records of a particular department for March:
Beginning work-in-progress inventory: € 27,500
(10,000 units; 100% complete like to materials,40% complete like to conversion)
Units completed and transferred out
during the month: 50,000 units
Cost per equivalent unit of production for March:
Material € 2.25
Conversion € 2.10
What was the total cost of units transferred out of the department during March?
a) €186,600
b) €214,100
c) €217,500
d) €245,000